Sunday, October 19, 2014

5 Best Penny Stocks To Own For 2015

5 Best Penny Stocks To Own For 2015: Transocean Inc.(RIG)

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors' Opinion:
  • [By Ben Levisohn]

    Despite the recent pain for offshore drilliers like Diamond Offshore Drilling (DO), Noble (NE), Transocean (RIG) and Vantage Drilling (VTG), RBC Capital Markets’ Robert Pinkard and team don’t think it’s time to buy their stocks. They explain why:

  • [By Ben Levisohn]

    Shares of Diamond Offshore have dropped 2.8% to $38.15 at 11:51 a.m., while Ensco has dipped 0.7% to $45.66, Noble (NE) has fallen 1.4% to $25.08, Seadrill (SDRL) has declined 0.4% to $30.39 and Transocean (RIG) is off 0.7% at $35.13.

  • [By Ben Levisohn]

    Offshore drillers are navigating choppy seas today–and its not just Seadrill (SDRL) that has problems, as analysts reiterated sell ratings on Transocean (RIG) and Noble (NE) today.

  • [By Teresa Rivas]

    Earlier this year, Transocean (RIG) completed the initial public offerin! g for Transocean Partners (RIGP), a master limited partnership holding several of its drilling rigs.

    Today, Morgan Stanley's Ole Slorer and Jacob Ng, reiterated their Equal-Weight rating on the stock, but write that investors should keep an eye on Transocean Partners, which offers a source of funds for fleet replacement, as well as shareholder-friendly policies like share buybacks and dividend increases.

    Although they don't see this playing out in the near term, the write that they "see meaningful scope for medium-term valuation uplift, depending on the path RIG's board takes."

    More highlights from their note:

    RIGP increases RIG's financial flexibility to fulfill its commitment to return capital to shareholders: Concerns have recently heightened over RIG's ability to sustain its $3/sh annual dividend. However, RIG now has the ability to tap on RIGP as an additional source of funding at a lower cost of capital. We believe that accelerated dropdowns could unlock shareholder value for RIG via dividend support, the funding of outsized buybacks, and multiple expansion. Also, see link to RIGP initiation report, published Aug 26th 2014.

    Roadmap to a $60 bull case: An overlooked element of value in RIG is the embedded "MLP" worth of its fleet, and our bull case is contingent on RIG accelerating the monetization of 6G+ units with sufficient contract coverage while divesting the rest of its lower-spec fleet. Furthermore, RIG's pace of monetization falls within its control as opposed to the rig market headwinds that it is sailing against. Meanwhile, we believe that activist presence could also motivate RIG to adopt a more aggressive approach to asset monetization. We see a higher bull case to the extent lower-spec assets could also be monetized, but this could require a more robust rig market than today, in line with our 2017/18 expectations.

    source from Top Stocks For 2015:http://www.topstocksb!! -best-penny-stocks-to-own-for-2015.html

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